Modell’s Sporting Goods filed for Chapter 11 bankruptcy on Wednesday.
Modell’s Sporting Goods, founded in 1889, filed for Chapter 11 bankruptcy on Wednesday, “citing a challenging retail environment.” At 131 years old, it is the oldest privately owned and continuously-operated sporting goods store in the US.
The news comes after Modell’s decision earlier this year to shutter 43 stores and terminate 4,300 employees in a drastic attempt at downsizing to preserve the future of the company. Sadly, those efforts failed, and they are now looking for bankruptcy protection from the state of New Jersey. There are 146 brick-and-mortar locations nationwide, though it’s unclear if and when all of them will close their doors.
Modell’s CEO Mitch Modell issued the following statement:
“Over the past year, we evaluated several options to restructure our business to allow us to maintain our current operations. While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers…We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates.”
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